The Unit of Account Function of Money

question 126

Multiple Choice

The unit of account function of money:

• A)means that money should be durable.
• B)means that money makes price information more accessible.
• C)requires that money be made of something valuable.
• D)means that money can be used to save up purchasing power.
• E)means that money is more easily counted than goods.

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Definitions:

Relatively Inelastic

Describes a situation where the demand or supply for a good or service changes only slightly in response to changes in price.

Price Elastic

Refers to a situation where the demand or supply for a product or service significantly changes in response to its price change.

Soft Drinks

Non-alcoholic beverages that are usually carbonated and contain various flavorings and sweeteners.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.